Can Internet Use Mitigate the Income Penalty of Overeducation in the Digital Economy?
Exploring the use of the internet to mitigate the income penalty of overeducation offers a new perspective for enhancing labor market efficiency in the digital economy era.Using data from the China Family Panel Studies from 2014 to 2018,this paper investigates the impact of internet use on workers'risk of overeducation and its mitigating effect on income penalties,and analyzes the underlying mechanisms.The study finds that internet use helps reduce the risk of overeducation(the"quantity effect")and increases the income of overeducated workers(the"income effect"),thus mitigating the risk and income penalty associated with overeducation.Detailed research shows that using the internet for work,learning,and social activities all contribute to reducing overeducation risk and mitigating the income penalty for overeducated workers.Heterogeneity analysis reveals that internet use significantly reduces the risk of overeducation in non-monopoly industries and has a greater effect on mitigating the income penalty for overeducated female and rural hukou workers.Based on these findings,the paper suggests leveraging the opportunities provided by the digital economy to enhance workers'digital skills through internet empowerment,promoting higher-quality and fuller employment.
Internet UseOvereducationIncome PenaltyMitigating Effect